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Handle missing data and outliers robustly

Last updated: Mar 29, 2026

Quick Overview

This question evaluates competency in machine learning preprocessing and robustness, specifically handling missingness mechanisms (MAR vs MNAR), outlier treatment, model-specific feature handling for linear and tree-based algorithms, and empirical assessment of probability calibration and interpretability.

  • hard
  • OneMain Financial
  • Machine Learning
  • Data Scientist

Handle missing data and outliers robustly

Company: OneMain Financial

Role: Data Scientist

Category: Machine Learning

Difficulty: hard

Interview Round: Technical Screen

You are modeling customer churn with features that include: numeric spend (heavy right tail, ~2% extreme outliers), counts with many zeros, and categorical plan types; missingness is a mix of MAR and MNAR (e.g., high-spend users sometimes omit income). 1) Propose a preprocessing pipeline for both linear models and tree ensembles covering imputation (median, KNN, MICE, model-based), indicator flags, robust scaling, and outlier treatment (winsorization vs robust estimators vs isolation-based filters). 2) Explain when each choice helps or hurts and why (e.g., how winsorization affects logistic vs tree splits; leakage risks in MICE). 3) Outline how you would empirically test the pipeline’s impact on calibration and SHAP explanations without optimistic bias. 4) If ~10% of records are MNAR on a key feature, what modeling or data-collection strategies would you apply to mitigate bias?

Quick Answer: This question evaluates competency in machine learning preprocessing and robustness, specifically handling missingness mechanisms (MAR vs MNAR), outlier treatment, model-specific feature handling for linear and tree-based algorithms, and empirical assessment of probability calibration and interpretability.

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OneMain Financial
Oct 13, 2025, 9:49 PM
Data Scientist
Technical Screen
Machine Learning
4
0

Customer Churn Modeling: Preprocessing, Missingness, Outliers, and Evaluation

Context

You are building a binary churn model for a consumer subscription/financial product. Features include:

  • Numeric spend: heavy right tail with ~2% extreme outliers.
  • Count variables: many zeros.
  • Categorical plan types (low to moderate cardinality).
  • Missing data: a mix of MAR and MNAR (e.g., some high-spend users omit income).

Answer the following:

Tasks

  1. Propose end-to-end preprocessing pipelines for both:
    • (A) Linear/logistic models, and
    • (B) Tree ensembles (e.g., XGBoost/LightGBM/Random Forest), covering imputation (median, KNN, MICE, model-based), missingness indicators, robust scaling, and outlier treatment (winsorization vs robust estimators vs isolation-based filters).
  2. Explain when each choice helps or hurts and why (e.g., winsorization in logistic vs tree splits; leakage risks in MICE/KNN; effects of scaling on KNN; when to avoid isolation forest).
  3. Describe how you would empirically test the pipeline’s impact on probability calibration and SHAP explanations without optimistic bias.
  4. If ~10% of records are MNAR on a key feature, what modeling and data-collection strategies would you use to mitigate bias?

Solution

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